Biggest concern I would have over cost is whether the contractor carries proper insurance and licensing etc. and can provide several references from local sources. Figure this person is upgrading your complete wiring system and providing the permits. Materials would probably run you $400.00 to $500.00 for 200AMP box, Mast assembly and breakers plus permit. Add your time for finding and purchasing . Now deduct that amount from $1600.00. Labor in my area (Ohio) just for the 200 AMP panel upgrade runs $900.00 to &1100.00. Get three quotes from qualified people check the refs and then make your decision on pricing. If he's qualified and has excellent references, it would sound reasonable to me. Just my two cents..................